Australia: Spudshed empire grows profits

Tony’s Galati’s growing Spudshed empire increased its profit by 76 per cent to nearly $4 million over the past year, despite pressure on margins fuelled partly by rising competition from international players.

Spudshed entity Vegie Bandits’ $3.96 million net profit for fiscal 2018, up from $2.25 million a year earlier, still reflected tight margins in a business which turned over $285.5 million, up 10.5 per cent, according to financial statements lodged with the corporate watchdog.

“Because of competition from internationals like Aldi, we’ve had to get far more efficient in absolutely everything we do,” Mr Galati said. The opening of a ninth store, in Bentley in December, also helped achieve economies of scale, Mr Galati said. Spudshed’s results were released as the discount retailer this week opened its 10th store at Midland.